DESPITE THE NEWS… KEEP WAITING FOR REAL ESTATE DISTRESS…

[Sean Kelly-Rand]

Redfin reports the value of US residential real estate has fallen $2.3 Trillion in the last two quarters…

And Columbia Trust (Pimco) is defaulting on office assets in major cities.

Let’s be clear though; defaults and falls in nominal values do not directly translate into buying opportunities. It will take years to work out the office defaults before a sale at a distressed value occurs. And most owners of residential properties aren’t willing to sell at today’s market clearing values. And, imho, in the non-boom towns (Boston included) it will take even longer to play out.

So despite the desire I don’t see most investors (myself included) jumping back in just yet.

Hunkering down for the long haul here at RD Advisors with the continued focus on capital preservation and yield generation through short-term private credit.

Thoughts?